AI infrastructure company Nebius to raise $3 billion to fuel growth – The Economic Times

Nebius Group mentioned on Wednesday it might increase $3 billion to gas progress in its core synthetic intelligence cloud business, on the heels of its $17.4-billion take care of Microsoft.

The financing features a $2 billion non-public providing of convertible senior notes and a $1 billion underwritten public providing of the corporate’s class A shares.

Goldman Sachs is lead book-running supervisor on the general public providing alongside Morgan Stanley, BofA Securities and Citigroup as extra book-running managers.

Nebius mentioned it can use the money to finance persevering with progress, together with the acquisition of extra compute energy and {hardware}, securing land plots with dependable suppliers and increasing its information heart footprint.

On Monday, Amsterdam-based Nebius introduced it might present Microsoft with GPU infrastructure capability over a five-year time period. Microsoft may additionally purchase extra companies capability below the deal, bringing the entire contract worth to about $19.4 billion.

On Tuesday, its Nasdaq-listed shares soared over 49% to a file excessive, pushed by the Microsoft deal. They’re up 245% to this point this 12 months. Shares had been down 5.6% in pre-market buying and selling on Wednesday.

Nebius emerged from a deal to separate the belongings of Russian tech firm Yandex.

International demand for information heart capability has risen sharply lately as firms faucet into new applied sciences to run their companies, particularly after the emergence of generative synthetic intelligence.